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The Launch Pad: Inside Y Combinator, by Randall Stross
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A behind-the-scenes look at how tomorrow’s hottest startups are being primed for greatness
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Investment firm Y Combinator is the most sought-after home for startups in Silicon Valley. Twice a year, it funds dozens of just-founded startups and provides three months of guidance from Paul Graham, YC’s impresario, and his partners. Receiving an offer from YC creates the opportunity of a lifetime.
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Acclaimed journalist Randall Stross was granted unprecedented access to Y Combinator, enabling a unique inside tour of the world of software startups. Over the course of a summer, we watch as a group of founders scramble to make something people want.
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This is the definitive story of a seismic shift in the business world, in which coding skill trumps experience, undergraduates confidently take on Goliaths, and investors fall in love.
- Sales Rank: #398901 in Books
- Brand: Stross, Randall
- Published on: 2013-09-24
- Released on: 2013-09-24
- Original language: English
- Number of items: 1
- Dimensions: 8.38" h x .79" w x 5.49" l, .40 pounds
- Binding: Paperback
- 304 pages
- Used Book in Good Condition
Review
“Y Combinator is a national treasure, a Silicon Valley seed fund that is mass-producing new startups. Randall Stross’s behind-the-scenes look at YC offers a rare glimpse into what it really takes to conceive an idea and get it to market as quickly as possible. The Launch Pad is a must-read for anyone interested in the realities of modern entrepreneurship.”
—Eric Ries, author of the New York Times bestseller The Lean Startup
“The Launch Pad is an intimate look at the white-hot center of the new Silicon Valley star tup ecosystem. Stross’s account of the best new entrepreneurs and the exciting companies they’re building at startup schools is a great read for founders and would-be founders alike.”
—Marc Andreessen, cofounder, Andreessen Horowitz
About the Author
Randall Stross writes the “Digital Domain” column for the New York Times and is a professor of business at San Jose State University. He is the author of several acclaimed books, including eBoys, Planet Google, and The Wizard of Menlo Park. He has a Ph.D. in history from Stanford University.
Most helpful customer reviews
22 of 23 people found the following review helpful.
Fast, Fun Read With A Few Insights
By Jeremey Donovan
Like most books of this kind, the author took what could be a 5 page article and turned it into a 240 page book. However, the fun of this book is in following the journeys of the entrepreneurs and investors the author observed while embedded at Y Combinator. The twists and turns in the fortunes of the young startups keep you engaged all the way through.
For those that want the short version, here is what you will learn: (YC = Y Combinator)
- YC accepts 3% of (the mostly B2B Internet software) startups that apply, funding them with $11K to $20K in exchange for 7% equity. In addition, most companies receive a $150K convertible note from loosely affiliated angel investors
- Startups must spend 3 months in Silicon Valley. However, YC intentionally does not provide office space. Most founders live and work from their rented apartments and come in to the YC Mountain View facility only for "office hours" and weekly dinners with guest speakers. The rationale is for founders to be in a distraction-free environment.
- The YC philosophy:
1. "Launch Fast" & "Get Big Slow": Release quickly and iterate based on CONTINUOUS feedback from customers.
2. Invest more in the founders than in their ideas since they are likely to "pivot" to a new idea. The founders must work well together, be brilliant coders, and have nerd-esque passion for the segment they are pursuing. Moreover, the idea should be challenging to others but not the founders to implement.
3. Make something that customers want (i.e. serves a compelling unmet need)
4. Focus on B2B opportunities
5. Share your failures
6. Pursue ideas that scale well (low variable cost to produce, easy to sell without a "door to door" sales force, easy to service)
7. Set and focus on ONE weekly target for growth (revenues or # of users)
8. Startups should hire friends and friends of friends
9. Be aggressive at sales
10. Avoid funding startups with only one founder
11. When presenting, speak slowly AND passionately (have "swag")
15 of 19 people found the following review helpful.
Insightful and well-written study on how great startups are born in Silicon Valley.
By Jason Y. Shen
Disclaimer: I'm one of the entrepreneurs who participated in the Summer 2011 Y Combinator session that Randall covers in his book.
Here's the deal. Silicon Valley is a really interesting as a hotbed for innovation and entrepreneurship. Y Combinator pioneered the "seed fund / accelerator" model and has scaled it to impressive levels. As an entrepreneur, it was a tremendous boost for me and my cofounders to participate in the YC program as we started our business. Randall got to see everything that went down and writes about it in a fair and honest way (which means I am left cringing numerous times when I encounter the sections about myself and my company). It also means I got to learn some really interesting things myself about the other companies in my "batch".
The book is roughly chronological, but touches on various themes like female founders, generating ideas, acquiring customers, fundraising and risk in each chapter. As a professor and journalist, Stross makes the effort to explain the jargon and clarify the concepts behind startups. His prose is clear, sturdy and never overly dramatic. The Launch Pad shows how tech companies are built at the earliest stages, and more broadly shows how Y Combinator is influencing Silicon Valley and the broader tech community around the world.
17 of 22 people found the following review helpful.
Nothing new, compelling or insightful
By I'm a PC
I wanted to like it, but it felt as though I had read most of it before. I guess it was probably the Bloomberg Businessweek article that previewed/had a chapter of the book or ran a similar story very recently. If you've read other startup books like 'Founders at Work', or 'Do More Faster' (TechStar's- YC's competitors book), you've already heard these/similar stories before. Stories of the birth, growth and sometimes death of successful and well-known startups and of YC and YC companies are also chockful and free on Quora.
If you haven't read the other books or are not familiar with the software startup world, this might be a good book, else its a so-so.
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